Despite intense competitive pressure in the room AC segment, VOLT has been able to gain a market share without sacrificing margins. We would
watch out for the company’s a) pricing/positioning on inverters, with the ratings changes from Jan’18 – a successful transition by VOLT would make us turn positive on the stock, and b) launch of washing machines and refrigerators in 2HCY18. Moreover, the projects business has also stabilized with a) margins recovering to 5-6% and b) a revival in the domestic business. We maintain our Neutral rating on thestock with an SOTP-based target price of INR 580.
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Motilal Oswal was founded in 1987 as a small sub-broking unit, with just two people running the show. Today it has a 2000 member team with a networth of Rs7 bn and market capitalization as of March 31, 2008 at Rs19 bn.
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